Funk Legend Sly Stone Awarded $5 Million in Back Royalties and Damages

Rock and funk icon Sly Stone, 71, was awarded $5 million in back royalties and damages on Tuesday, January 27, in a breach-of-contract lawsuit claiming his business partners and his own company cheated him out of royalties.

In a unanimous jury decision, a Los Angeles County court found that Stone (real name Sylvester Stewart) was wrongfully denied royalties by his former manager Jerry Goldstein, attorney Glenn Stone and Even St. Productions. The jury assessed $2.5 million in damages against Even St. Productions, $2.45 million against Goldstein and $50,000 against attorney Glenn Stone.

Regarding the court victory, Stone's attorney Nicholas Hornberger told reporters, "It's a good day for Sly, it's a good day for entertainers in general. This was an important verdict for people that are artists, entertainers, music composers, etc." Over the phone, he said to the LA Times, "It's a nice win for a cool guy, and in the bigger picture it sends a loud and clear message... good news for music, good news for composers and others who earn their livelihood in this business."

Sly filed the lawsuit in January 2010 to get what he believed was owed to him. According to his lawyers, Goldstein and Glenn Stone convinced him to become an employee of and co-owner of Even St. Productions with them in 1989. He assigned royalty rights to the company and was supposed to receive some of the money it collected for him. "They met him, they signed him up ... but what they really wanted was his royalties," said Hornberger.

Sly Stone founded and fronted for the Sly and the Family Stone band in 1966. The group was successful for a decade before breaking up in the mid-1970s, with hits that included Everyday People, Dance To The Music, Family Affair, Hot Fun in the Summertime and Thank You. Sly Stone was inducted into the Rock and Roll Hall of Fame in 1993.

Lawyers for the defendant said they will challenge the jury ruling of an award in favor of Sly Stone.